the discipline of asset management and iso 55000 boardroom … · 2019-09-02 · using the iso...
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Sustaining organisational performance
through leveraging physical assets and human capital
Karl NepgenPartner Consultant, Pragma Africa (Pty) Ltd
Sustaining organisational performance
through leveraging physical assets and human capital
• Where are the Lines-of-Sight between organisational (business) performance and operational assets?
• What mechanisms are available to assure the asset owner/operator of such performance?
• Can formalised Asset Management a la ISO 55000 provide solutions to above challenges?
Optimised Decision-Making
The objective of asset management is to maximise the performance of the assets, while minimising risks and doing this within existing resource and cost constraints
CASE STUDY
• Three Round 1 REIPPPP Projects
• Jeffreys Bay Wind Farm (138MW)
• De Aar Solar Power (50MW)
• Droogfontein Solar Power (50MW)
• More than 48 months in operation
Discussion
Refer to the “balancing act” to the left.
Describe examples of the following situations from your experience, and possibilities with reference to the case study (PV Plant):
• Improving the performance of assets, but increasing costs in order to do so
• Reducing asset management costs, but increasing asset-related risks in the process
• Improving asset performance, but increasing asset-related risks
AM is “the coordinated activity of an organisation to realise value from assets over its life cycle”
ACTIVITY
Approach, planning,
plans, implementation
REALISE VALUE
BALANCING costs, risks,
performance
ASSET
Something with ACTUAL or POTENTIAL
value
LIFE CYCLE
STAGES involved in the management
of an asset
Asset Management definitions according to ISO 55000
PAM Life Cycle
Create / Acquire
Operate
Maintain
Renew / Dispose
Org
anis
atio
nal
entr
op
y
20+ years
Commercial Operation
End of Warranty
Levels of Assets and Asset Management
Application Example
Utility Power generation, Financial management, HR management, IT
Plant, Infrastructure Generation, transmission, distribution assets
Services, Spare parts administration
Services, logistics assets
Plant PV Field, Inverters, Sub-station, Control &Monitoring
Complex asset PV Array, Inverter, Power Transformer
Individual assets PV Module, Junction Box
Getting technical …
MonthBudget
MonthYTD
Net Generation (GWh) 6.6 7.2 46.0
Availability (EAF %) 99.9 98.7 99.8
12 Month Rolling Average
Availability (%)99.5
Net Capacity Factor (%) 19.5 22.9 23.1
Performance ratio (%) 83.4 78.9 80.9
Revenue/Income (ZAR m)
Typical plant performance KPIs
-
,1.0
,2.0
,3.0
,4.0
,5.0
,6.0
,7.0
,8.0
,9.0
,10.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Pro
du
ctio
n G
Wh
De Aar - Actual vs. Forecast Monthly Production
Plant Life Cycle
Create /Acquire
Operate
Maintain
Renew /Dispose
Org
anis
atio
nal
entr
op
y
20+ years
Commercial Operation
End of Warranty
Major refurb, replacement
Life Cycle Management Model -Asset Acquisition focus
Capital project
management
Asset investment
management
Asset value
optimisation
Life cycle costing
Installation and commissioning
Capex budgeting
Decommis-sioning and disposal
Asset portfolio management
Systems engineering
Asset creation and acquisition
New requests
Transactional information Handover
Capital investment decisions
Operation and maintenance
Demand analysis
Funded projects
Asset management plan
Replacement requests
Pro
ble
mA
pp
roac
h t
o s
olv
e
The Problems of Technical Complexity
Source: Ad Sparrius – System Engineering
Increased complexity of new systems
Many alternative implementation methods exist
System performance is constrained by human performance
Give detailed attention to requirements to ensure they are completely satisfied
Consider functionality independently of its implementation
• Structured design process -> allowing design decisions to be made in context of overall requirements
• Detailed design responsibility decisions -> diffused and decentralised
• Characterise human capabilities and limitations
• Consider the human as integral part of the system
• Carefully select, train, qualify and motivate operators, maintainers and other personnel
Increasing specialisation of designers and larger design teams. Increasing interaction between items.
AM Landscape Subject Definition
AM Landscape: 2014
An interdisciplinary, collaborative approach to derive, evolve and verify a
life cycle balanced system solution which satisfies customer expectations
and meets public acceptability.
13. Systems Engineering
Asset management cannot be successfully conducted based on individual assets, but must take
into consideration the whole asset system that considers the interrelationship and
interdependencies between key assets. Systems Engineering in an AM context is the
practice of ensuring effective planning, optimal design, performance, operation and
maintenance at an asset system level.
AM – An Anatomy V3: 2015
Operational or User Requirements
Source: Ad Sparrius – System Engineering
• List all necessary requirements, but not nice-to-haves
• State functional requirements, not solutions (leave options for design)
• Be clear and non-ambiguous (eg ranges of performance)
• Be realistic – requirements must be achievable
• All requirements must be verifiable (if possible, quantify)
• It must be complete, yet concise
Example of User Requirements
• NASA defined an operational requirement for a ‘zero gravity ballpoint pen’
• Developed by Fisher at considerable cost, using pressurised nitrogen to feed the ink
• The pen costs US$50
Writing in space (USA)
• The Russians stated their operational requirement as ‘write in zero gravity’
• Solution was to use a pencil …
Writing in space (Russia)
Example of Operational Requirements –Plant level
Source: Hooks, Wheatcraft; Scope—Magic, Compliance Automation, 2001
• Power generation: 50 MW• Energy delivery per annum: 120 GWh• Availability: 99.5%• PR: 80%
Plant Life Cycle
Create /Acquire
Operate
Maintain
Renew /Dispose
Org
anis
atio
nal
entr
op
y
20+ years
Major refurb, replacement
Life Cycle Management Model -O&M focus
Capital project
management
Asset investment
management
Asset value
optimisation
Life cycle costing
Installation and commissioning
Capex budgeting
Decommis-sioning and disposal
Asset portfolio management
Systems engineering
Asset creation and acquisition
New requests
Transactional information Handover
Capital investment decisions
Operation and maintenance
Demand analysis
Funded projects
Asset management plan
Replacement requests
Asset Management
Plan(AMP)
So, what to look for in this AMP …
• Information and data specific to a designated asset type or closely related group (e.g Inverters)
• Reference information (not which leads to actions that must be planned)
– Not generally known to the Asset Owner, Asset Manager and O&M Contractor from as-built project documentation sources
– Specific extracts from as-built project documentation, that provides background for asset management decision-making
• Guidance and rationale for asset management decision-making
• Asset management action planning information, resulting from triggers
– Risk-based actions, required to mitigate potential or realised risks
– Opportunity-based actions, required to exploit options with adequate business justification
• NB - The AMP is a live document, to be continuously improved, and approved at regular milestones
Criteria for a good AMP … in practice
Using the ISO 55001 AMP
Condition per major asset
systemdrives LCM
actions
0%
20%
40%
60%
80%
100%L1C1
L1C2
L1C3
L1C4
L1C5
L1C6
L2C1
L2C2
L2C3L2C4L2C5
L2C6
L2C7
L3C1
L3C2
L3C3
L3C4
L3C5
L3C6
DA Inverter EC Score
Condition Rating Description Action requiredPoor 0 - 20% The items have deteriorated
beyond repair. Replace unit as soon as possible
Bad 21 - 40% The items have suffered serious deterioration and failure is very likely.
Urgent specialised refurbishment
Fair 41 – 60% The items show abnormal wear and require some repair. Maintenance backlog is evident.
Perform maintenance catch-up
Good 61 – 80% The items show normal wear and tear due to ageing, maintenance appears to be effective.
Continue at existing level of O&M
Excellent 81 – 100% The items are as good as new. None
• Methods and mechanisms exist to provide assurance thatstakeholder requirements are sustainably delivered on byphysical assets
• ISO 55000 and the discipline of asset management providethe structure to assure value extraction over extendedlifetimes.
Sustainable management
of asset performance and value creation
CASE STUDY: CONCLUSION